HomeMy WebLinkAboutRes2017-042Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2017-042
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING A LEASE AGREEMENT FOR UP TO ONE
YEAR WITH EXIT MARINE, LLC FOR LAND AT THE SEWARD
MARINE INDUSTRIAL CENTER
WHEREAS, Exit Marine, LLC is currently working in the City's boat storage yard
located at the Seward Marine Industrial Center (SMIC) and wishes to extend their business long
term; and
WHEREAS, Exit Marine, LLC desires a long term lease and has initiated the plat
process for a parcel of land located at SMIC; and
WHEREAS, the plat process takes a minimum of several months, and the company
wishes to continue operating their business while the replat is taking place, and
WHEREAS, Exit Marine LLC would like to lease this parcel for up to one year or until
a long term lease can be negotiated and approved by the City Council upon final approval of the
plat; and
WHEREAS, the lease request is consistent with the Comprehensive Plan and the Seward
Marine Industrial Center Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The Council approves the agreement to lease approximately 41,055 square
feet to Exit Marine, LLC. The term of the agreement shall not exceed one year and such short-
term lease shall not be considered a commitment by the City to approve any subsequent lease.
Section 2. This resolution shall take effect 30 days after adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of
August, 2017.
1
CITY OF SEWARD, ALASKA
RESOLUTION 2017-042
THE CITY OF SEWARD, ALASKA
can Bardarson, Mayor
AYES: Casagranda, Keil, Squires, McClure, Altermatt, Slater, Bardarson
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
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(City Seal)
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Agenda Statement
Meeting Date: August 14, 2017
To: City Council
Through: Jim Hunt. City Manage
From: Norm Regis, Harbonnaster
Agenda Item: One Year Lease, Exit Marine, LLC
Approximately .942 acres of Land at SMIC
BACKGROUND & JUSTIFICATION:
Exit Marine, LLC is starting a new boat repair business in Seward. The business has the
necessary financing to develop the approximately .942 acre proposed lease site located in the
northeast portion of the City Storage yard at the Seward Marine Industrial Center. Exit Marine
desires long term lease of this site, but the replat necessary to create the lease parcel will take a
minimum of several months. In order to be operational this season Exit Marine wishes to enter
into a month to month lease of up to one year in anticipation of a long term lease after the plat
process is finished. Attached Exhibit A shows the parcel.
Exit Marine would like to have the electric utilities in the ground prior to winter, and understands
that if the Council does not approve the future long-term lease that any funds spent installing the
in -ground electrical service are not refundable.
The purpose of this lease is to allow Exit Marine use of the land for the time necessary to
complete the platting process in anticipation of a long term lease which may or may not be
approved by the Seward City Council.
INTENT:
To approve a month to month agreement for up to one year to lease land to Exit Marine, LLC at
SMIC.
CONSISTENCY CHECKLIST:
Yes
No
N/A
1
Comprehensive Plan (document source here): This lease meets the plan
X
goals to develop SMIC as a major industrial area of the community.
Strategic Plan (document source here): Attract New Industry:
2
Develop an aggressive marketing campaign which highlights the diverse
X
resources, and quality of life that make Seward a great place to live and
establish a business or industry. (Page 5)
3.
Other (list):
FISCAL NOTE:
The rent is $600.00 per month plus tax. The lease rate is based on the 2015 appraisal of a nearby
parcel, with increases since that time based on the Consumer Price Index.
Approved by Finance Department: X"&-3
ATTORNEY REVIEW: Yes X No
RECOMMENDATION:
Approve Resolution 2017- authorizing the City Manager to approve a one-year lease
with Exit Marine, LLC.
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SEWARD MARINE INDUSTRIAL CENTER LEASE
This lease (hereinafter "Lease"), for good and valuable consideration, is entered
into between the City of Seward, Alaska, a municipal corporation, organized and
existing under the laws of the State of Alaska (the "City"), whose address is
P.O. Box 167, Seward, Alaska 99664, and Exit Marine, LLC, an Alaska limited liability
company authorized to do business in Alaska, and whose address is 281 S. Conquest
Circle, Wasilla, Alaska 99623 (the "LESSEE").
1. Purpose of Lease. This Lease grants LESSEE use of the un-platted real
property described below for the purpose of storing materials and equipment and
preparing the parcel for its business, in accordance with all laws, regulations,
ordinances and City policies while the platting process is completed.
The intent of the parties is to enter into a long-term lease of the premises once the
platting process has been completed and the plat receives final approval. The platting
process and any improvements will be completed by LESSEE at LESSEE's expense.
Council approval of a long-term lease will not be unreasonably withheld.
2. Description of Pro e . A parcel of land in Seward, Alaska shown as
41,055 square feet of Lot 3 of Block 4 on Exhibit A attached hereto, and more
particularly described as follows:
Lot 3, Block 4, of Seward Marine Industrial Center, an area consisting of
approximately .942 acres, more or less, the approximate boundaries
shown in Exhibit A to this lease.
Other than access to and from this designated area, use of any area outside of this
designated area is not permitted, including, but not limited to, parking, storage or
disposal.
3. Term. The term of this Lease shall commence July 24, 2017, and
continue until the earlier of one (1) year or the effectiveness of a long-term lease
approved by the Seward City Council ("Council").
4. Leases. are subject to the Seward City Code and Require Council
Approval. LESSEE understands and agrees that this and any subsequent lease is
entered into pursuant to Seward City Code Chapter 7 and is subject to Council approval
and referendary petition as follows:
(a) Pursuant to Seward City Code § 7.05.125, this Lease is subject to
Council approval. If a resolution authorizing this Lease is presented to Council and
Council does not approve the resolution, this Lease shall automatically terminate.
(b) Upon Council approval of the resolution approving any lease or
other interest in land, the approved agreement is subject to suspension during the first
SEWARD MARINE INDUSTRIAL CENTER LEASE PAGE 1 OF 4
507486\1002\00628587
thirty days after passage of the resolution if a sufficient referendary petition is filed in
accordance with § 4.8 of the Seward City Charter.
(c) Upon termination or suspension of the Lease pursuant to this
Section 4, LESSEE agrees to remove any connexes, vehicles, materials, equipment
and other property from the premises within five (5) calendar days of such termination
or suspension, and restore the premises to the same or better condition existing at the
time prior to entering upon the premises. LESSEE will not be reimbursed for any
expenses incurred in preparation for a long-term lease.
5. Rent. Upon execution of this Lease, LESSEE shall pay the City $600.00
per month for the rental of the premises for the term of this Lease to be calculated on a
pro rata basis for any partial month prior to entering a long-term lease. LESSEE agrees
that the rental amount is an interim calculation and is not necessarily representative of
any rental amount that will be imposed under any long-term lease for the property.
6. LESSEE's Property. Any vehicle, equipment or material placed upon the
above -described premises shall be and remain the property of LESSEE and may be
removed therefrom by LESSEE at any time provided that LESSEE shall not damage or
impair the City's property while installing or removing LESSEE's property.
7. Termination. In the event of LESSEE's default in the performance or
observance of any of the Lease terms, conditions, covenants and stipulations thereto,
and such default continues five (5) days after written notice of default, the City may
cancel this Lease, or take any legal action for damages or recovery of the property.
This Lease may be terminated for convenience by either party upon fifteen (15) days'
written notice to the other party. Upon termination or cancellation of this Lease,
LESSEE covenants and agrees to remove any vehicles and all other equipment and
materials from the premises within five (5) days and restore the premises to the same
or better condition existing at the time prior to entering upon the premises. Removal will
not be required if this Lease is superseded by a duly authorized long-term lease for the
premises prior to the end of the term set forth in paragraph 3 above.
8. Liability and Indemnity. Except and to the extent solely caused by the
City's own negligence or intentional misconduct, the City shall not be liable for damage
to property or injuries to persons, including death, arising from the construction,
operation, maintenance, removal or activity of LESSEE, its principals, officers,
employers, associates, agents, representatives, successors, heirs or assigns, licensees
or invitees, and LESSEE does hereby agree to release, protect, defend, save harmless
and indemnify the City, its officials, employees and authorized representatives against
any loss, cost, damage, expense, judgment or liability of any kind whatsoever, from or
by reason or on account or as a result of the activity of LESSEE.
9. Waiver. LESSEE acknowledges that the premises are not secured by the
City, the area is open to other users and the public, and LESSEE accepts all risk of loss
or damage whatsoever. LESSEE waives all claims against the City for any and all loss
or damage that may occur. The City makes no representations or warranties as to the
fitness of any particular part or the whole of the City's public facilities for the uses
SEWARD MARINE INDUSTRIAL CENTER LEASE PAGE 2 OF 4
50748611002100628587
intended by LESSEE and LESSEE has inspected the site and has satisfied itself that
the designated premises are sufficient for the intended uses by LESSEE. The City
makes no representations or warranties of any nature with respect to the commercial
practicability or accuracy of any information provided by the City.
10. Liability Insurance. LESSEE, during the term of this Lease, shall carry, at
its expense, public liability insurance covering the licensed property in an amount of not
less than $500,000 for injury or death to any one person, $1,000,000 for injury and/or
death to any number of persons in any one accident, $1,000,000 for property damage
or destruction and the statutory amount required for Workers' Compensation insurance.
The minimum requirements in this section may be increased from time to time by the
City in accordance with customs and usage for comparable property in the Seward
area.
11. Additional Named Insured: Waiver of Subrogation. All insurance policies
required of LESSEE shall name the City as additional insured. All policies shall contain
an agreement by the insurers that such policies shall not be canceled or amended
without at least thirty (30) days' prior written notice to the City, and certificates or copies
of all such insurance policies shall be furnished to the City promptly after the issuance
thereof.
12. Repairs and Maintenance. LESSEE shall pay the cost of repair of any
damage to the above -described premises caused by LESSEE, its invitees or guests
occurring during the term of this Lease.
13. No Assignment or Subleasing. LESSEE is not allowed to assign this
Lease or sublease the premises.
14. No Hazardous Materials. The use, keeping, storage, or disposal of
hazardous materials on the premises is prohibited.
15. Lease Agreement Only. LESSEE agrees and understands that this
agreement is a temporary lease agreement only and that by accepting this contract the
City is not accepting LESSEE's property for storage; the relationship between the
parties is simply that of a landlord and tenant. Unless the property is formally
impounded by the City, the vehicles, equipment and materials on the premises, shall at
all times remain in the exclusive possession and control of the LESSEE and the City is
not acting, and shall not be held liable in any manner, as a warehouseman or a bailee.
SEWARD MARINE INDUSTRIAL CENTER LEASE PAGE 3 OF 4
50748611002100628587
IN WITNESS WHEREOF, the parties hereto have executed this document by
and through their duly authorized officials.
CITY OF SEWARD, ALASKA
By: Jim Hunt
Title: City Manager
Date:
ATTEST.
Johanna Kinney, City Clerk
(City Seal)
State of Alaska
EXIT MINE, LLC
By: Mike Saunders
Title: Owner
Date: r:.>'7—
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